Savills Research has revised its forecast for Singapore’s office rental growth in 2026, increasing it from 2% to a range of 3%–5% year-on-year. This adjustment is attributed to tight supply conditions and sustained occupancy levels. In the first quarter of 2026, average rents for Grade A offices in Singapore’s Central Business District (CBD) rose by 0.6% quarter-on-quarter to S$10.02 per square foot, marking the highest level since the pre-pandemic period of 2019.
The demand for premium office space remains robust, with Grade AAA office rents increasing by 0.4% quarter-on-quarter to S$13.28 per square foot in Q1 2026. However, the growth momentum in this segment is moderating as rents approach cyclical highs. The vacancy rate for CBD Grade A offices decreased by 0.1 percentage points to 6.6%, the lowest since Q3 2024.
Ashley Swan, Executive Director of Commercial & Industrial at Savills Singapore, noted the continued leasing activity and tightening supply, particularly in premium grade buildings. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, commented that limited new supply and low vacancy levels allow landlords to maintain pricing power, supporting rental growth.
Despite geopolitical uncertainties and rising costs, the structural supply constraints are expected to drive rental performance. The forecasted rental growth reflects these dynamics, with landlords positioned to benefit from the tight market conditions.
